August 10, 2016


China Broiler Weekly: Surge in supply drags down prices (week ended Aug 3, 2016)


An eFeedLink Exclusive

Price summary


Prices fell substantially.


Market analysis


AA broiler

AA broiler prices slid a whopping 5% during the period in review, as farmers released finishing broilers that releases were delayed due to floods and heavy rains in several regions. With demand for chicken showing little improvement, slaughterhouses supressed prices in a bid to maximise profits.


Chick prices dropped prominently to RMB2.60-3.50/bird amid slack buying interest.


China breed broiler 

Although prices of native broiler rose 3% in Guangdong, average price dropped more than 3% over the week as prices dipped in all other regions amid excess supplies. In the east, prices plunged almost 10% with demand exceptionally weak.


Native chick prices were soft but price falls were limited as supplies dwindled of late.


Market forecast

Broiler prices are expected to stabilise after the recent sharp falls, as most farms have cleared excess stocks. However, the upward scope of the broiler markets will be limited in the near term with demand for chicken slow.
RMB=US$0.1506 (Aug 10)

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